Jul, 2001 : HP begins new server pricing plan Mike Drach
📅 - Hewlett-Packard (hp.com) initiated a program Monday that allows customers to pay for how much they use their servers, rather than how powerful the machines are. This plan will have high appeal to companies providing services with substantial periods of high and low demand.
HP first announced the pricing plan in September, along with the unveiling of the Superdome Unix server, the company's most powerful machine to date. Although servers with high processing power are traditionally the most expensive to use, HP's new pay-per-use policy charges companies based on the amount of actual computing that the server does. The plan will include technology that monitors server usage.
Executives from HP say that customers that experience spikes in demand would not have to spend as much money for their high-end systems during comparatively slow periods. However, they will still be charged a monthly base fee.
The new policy is part of HP's attempt to recover from losses in the server business to companies like IBM, Compaq Computer, Dell Computer, and Sun Microsystems, as well as an overall decline in the market. In addition, HP has cut costs of several Intel servers, including the rack-mountable LP 1000r, E 800, and LC 2000.
HP first announced the pricing plan in September, along with the unveiling of the Superdome Unix server, the company's most powerful machine to date. Although servers with high processing power are traditionally the most expensive to use, HP's new pay-per-use policy charges companies based on the amount of actual computing that the server does. The plan will include technology that monitors server usage.
Executives from HP say that customers that experience spikes in demand would not have to spend as much money for their high-end systems during comparatively slow periods. However, they will still be charged a monthly base fee.
The new policy is part of HP's attempt to recover from losses in the server business to companies like IBM, Compaq Computer, Dell Computer, and Sun Microsystems, as well as an overall decline in the market. In addition, HP has cut costs of several Intel servers, including the rack-mountable LP 1000r, E 800, and LC 2000.
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